Redrow has announced a 25% increase in turnover to £187.2m for the six months to 31 December 2009, but it still turned in a pre-tax loss.
The house builder’s revenue rose on the back of increased volumes and prices.
Legal completions increased by 21% to 1,266, with an average selling price 3.6% higher at £145,500. The gross margin rose to 7.2% from the previous 5.6%.
The pre-tax loss of £8.7m was 81% down on the £46.2m reported a year.
Net debt fell to £49.3m from £269.1m and net assets rose to £434.4m from £369.4m. Completion of a £150m rights issue strengthened the balance sheet and helped reduce gearing to 11.3% from 73%.
Chairman Steve Morgan said his first priorities on returning to Redrow had been to refocus the business towards a high-quality family housing product.
The house builder launched the New Heritage Collection in February which Morgan said had been well received:
“The only negative point is that the roll-out is being constrained by the time taken by local authorities to give planning permission on both existing and new developments.
“The housing market has continued its steady recovery and as a result we have increased our legal completions by 21.5% to 1,266. However, it is difficult to see further substantial progress until mortgage availability improves significantly.
“With the launch of the New Heritage Collection and our low level of gearing we are well placed to take advantage of opportunities as they arise.”
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